Startups in India raised a total of $6.9 billion across 1,013 venture capital (VC) funding deals announced during January-November 2023, said a report by GobalData. This, it said, is a 65.8 per cent drop in terms of value compared to the $20.2 billion worth of VC funding raised during the same period in the previous year.
Per an analysis of GobalData’s Financial Deals Database, VC funding deal volume registered a year-on-year decline of 38.4 per cent as compared to the announcement of 1,644 VC deals during January-November 2023.
The report added that it took only four months for India to surpass the $10 billion mark in total VC funding value during 2022.
“Nevertheless, startups are aware that VC firms continue to see India as an attractive market and they will not mind in placing bets in promising companies. India, apart from being a key APAC market for VC funding activity standing just next to China in terms of both deal volume and value, is also among the top five markets globally. Against this backdrop, startups have started undertaking restructuring exercises focusing on sustainable growth and profitability to navigate through this funding drought and gain investor confidence,” said Aurojyoti Bose.
India accounted for 5.5 per cent of the total number of VC funding deals announced globally during January-November 2023 while its share of the corresponding disclosed deal value stood at 3.1 per cent.
Some of the notable VC funding deals announced in India during January-November 2023 include $250 million fundraising by PhysicsWallah, $229 million worth of funding raised by Perfios Software Solutions, $200 million fundraising by PhonePe, $200 million worth of funding raised by Zepto, and $120 million worth funding raised by Zetwerk.